hi if you can help i would be very grateful. I had one of my credit cards send cash into my buissiness account to pay another credit card off but a couple of days later a close family member died which meant i had to have a few weeks of work and i endid up using some of the balance transfer money to pay drawings, shop rent, and a couple of bills .The problem i have now is i dont know how to record it as it is not actually takings that i have used to pay out things . I am a sole trader and all of a suden my simplex d book has got very complicated please can you help.
If I've understood your post properly, you've transferred personal funds (via a credit card) into the business account (and you've subsequently used these funds to pay for business expenditure). As you're a sole trader, this is capital you've introduced.
I thought (but it is so long since I looked at a Simplex D book) that there was another column in receipts for "other receipts". If there is, I would stick it in there, with a note of what it is. (If you have an accountant, make sure they know what it is or, if you do your own self-assessment tax return, remember to exclude it from your takings. The last thing you want to do is pay income tax on your own money ;)
thanks for the quick reply but just to be sure, when I pay the credit card payments are these then classed as drawings and expenditure then added to weekly ,monthly figures because payments are from takings not the capital. once again thanks from very grateful sole trader.
